Question 2 2 Marks Assuming Households In One Economy Consume Only 10 Cars And 400 Smartphone The Price Of These Pro 1 (33.2 KiB) Viewed 10 times
Assume that your annual income is 25 million in 2015, and 38 million in 2016. What is the growth rate of your nominal income in 2016? What is the growth rate of your real income in 2016? Question 2 (2 marks): Assuming households in one economy consume only 10 cars and 400 smartphone. The price of these products in each year is given in the table. The base year is 2015. Year Car price Smartphone price 8,000 9,000 2015 2016 a. Compute the CPI and inflation rate in 2016. Do these price changes affect all consumers to the same extent? Explain. 250 280
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